All Forum Posts by: Victor Robinson

Very interesting, @Derek Dombeck. I sent you a connection request.  I'd like to talk more about that strategy as it sounds like something that fits well with my goals and skill set. 

Thanks, @Jaime Raskulinecz. I think your comments helped me to better understand some of what I've previously read. The SDIRA would require the assistance of an IRA custodian whereas a self directed Solo 401k could be set up where I have check-writing authority and, as a result, can move faster on deals. Is that right?

Thanks, @Jim Goebel. I've not considered OOS investing as I'm very pleased with the returns from my buy and holds in MS.  So much so that I'm surprised that everyone is so hot on the Midwest. I can get the same returns in MS but MS gets no love. 

One of the reasons I like buy and hold is the tax benefits. I don't want to use SDIRA funds for that strategy because I would miss out on the tax benefits. I will continue to grow that side of my business with my discretionary income (and tenants' rent payments). 

As a general rule, flipping offers better short-term returns than buy and hold, but you pay a lot of income tax. Also, I don't have enough free time for that to be a viable option for me. I would be interested in meeting with a flipper (or apartment syndicator) and potentially partnering on a deal (because I think that would offer much better returns that stock market (or buy and hold) but the returns wouldn't get taxed (yet).

So my standard rei strategy is buy and hold rentals.  That works for me a my goals for a number of reasons.  One reason is that it fits well with my also having a full-time W2 career. 

In my W2 world, I am in the process of going to work for a different company and will have about $40k in an 401k that I will need to move elsewhere.  Not a huge chunk of money, but it's something.  I'd like to move those funds into an SDIRA (or Solo 401k, still not sure of the difference) and use them to engage in a different rei strategy - one that can offer a higher return than buy and hold, but likely doesn't carry the tax and leverage benefits. 

I've thought about private lending with a local flipper.  I'm also considering tax leins and note investing (although a little nervous as I'm less comfortable with the due diligence that would be required for that type of investing).  I'm also interested in syndications and the Fundrise platform. 

I would love to hear what the BP community thinks about the benefits of these different when the source of funds is a SDIRA of about $40k and I'm not interested in tax benefits.

Thanks in advance.

@David Wilson

You will certainly get a lot of good suggestions from folks on this topic. Almost all will begin with some derivative of “it depends on your goals.”

That said, while my path will be very different than yours because we begin in different situations, my GOAL is to own real estate (the dirt, not syndication investing) and for it to provide truly passive income.

As such, in a perfect world I will grow my (active income) portfolio to the point that I can 1031 into NNN properties that throw off enough cash to allow me to live the lifestyle I want and only be engaged in the work that I want.

If that sounds like you, you should contact @Joel Owens as he is the resident expert on that topic.

@Jan Van der vorm

No. If anything, your tax liability would increase because you’re no longer writing off interest.

@Mark Perea @Jessica G. @Stephanie P.

The lenders email started with "good morning guys" which sounds like a partnership/LLC.

A bank isn’t going to do a 30-yr fixed commercial loan. Nor will they typically amortize commercial loans more than 20 years.

From the lenders comments, sounds like a standard 5/1 arm.

@Cody L. When you say “debt partners” you’re basically talking private lenders, right?

@Clifford Paul @Steve Vaughan @Anthony Wick @Caleb Heimsoth @Jeremy Kuchenbecker @Scott Jensen @Jason Graves @Mark S. @Daniel Jewell @Joe Splitrock @Frank Wong @Jay Hinrichs

I appreciate all of the comments/feedback. Lots of good suggestions. Big takeaway here is to continue save cash to build reserves (worst case scenario is reserves can float mortgages, car notes, etc.) and consider eliminating debt by selling the depreciating assets (only using cash to pay them off if the goal is related to improving DTI/DSCR quickly).

Thanks again for all responses. Keep 'em coming!

@Cris Agui

Depending on the type of properties you have, proper screening with 1-yr leases would be best. And in that case, as others have said, the lease provides you with some protection and a general idea of when you should expect vacancy.

However, if you choose to invest in C-/D neighborhoods, that “protection” simply gives you ammo in a lengthy and costly eviction. In those neighborhoods, month-2-month leases from get-go could help avoid the hassle of evictions while still spelling out terms of agreement.